ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), on Sunday, voiced concern over the sudden erosion in the exchange rate and termed it against and unacceptable.
The local currency has nosedived after remaining stable for three and a half years and now a US dollar is being sold at Rs 107.25 in the open market which has created uncertainty, it said.
“The regional chairman of FPCCI of Horticulture Exports, Ahmad Jawad, asked the concerned authorities to take immediate steps to stabilise exchange rate and take action against the elements who are trying to exploit the current politically uncertain environment.”
He said that fall of the rupee will not improve exports and it will not help authorities tackle record trade deficit. The export policy should be adjusted to improve export competitiveness leaving exchange rate unchanged as it will damage masses by making imports costly and stoking inflation.
Jawad said that the uncertainty has hit importers and exporters and masses, and many currency dealers were exploiting the situation which calls for intervention by authorities. Masses should not be made to pay the price for wrong economic decisions and failure of the export sector, he demanded.
“Our export sector has lost its competitiveness due to a lack of support; it is addicted to subsidies, tax breaks, bailouts, and currency devaluation,” he observed.
He predicted the situation will lead the next government to borrow more to stabilise forex reserves which will be an economic suicide.
